Bloomberg: U.S. companies still have to pay Huawei 5G even if Trump administration enforces ban

A new study shows that Huawei has the most patents in 5G technology, meaning it will still be paid even if the Trump administration takes action to remove it from its supply chain, Bloomberg reported. A study by two research firms identified patented inventions most closely related to the 5G standard.

Bloomberg: U.S. companies still have to pay Huawei 5G even if Trump administration enforces ban

The study found that six companies, Huawei, Samsung Electronics, LG Electronics, Nokia, Ericsson and Qualcomm, accounted for more than 80% of patents. Qualcomm is the only U.S. company.

For U.S. President Donald Trump, this could be embarrassing. Now the Trump administration is taking action around the world in the hope that governments around the world will shut out Huawei on the grounds that the Chinese company poses a security threat. The U.S. government has launched a series of attacks, including a ban on the sale of any semiconductor chips made from U.S. technology to Huawei, which could hamper huawei’s development in cutting-edge areas.

“Even if they choose other companies to build 5G infrastructure, they will still have to pay the Chinese company because Huawei has made an intellectual contribution to the development of 5G technology. Deepak Syal, head of MarketResearch’s GreyB Services Pte, said. GreyB Services Pte conducted this 5G patent study with Amplified AI, another market analysis firm.

Determining how many patents a company has, and how critical they are to industry standards, will help determine who will benefit most from next-generation technology (5G).

Industry standards are critical to ensuring that devices work together and communicate with each other. Technology companies work together to develop these standards and promise to license any relevant patents on “fair, reasonable and non-discriminatory” terms.

For years, there has been a patent battle over how to define these fair terms and who is entitled to how much royalties. They were at the heart of a later dispute, including apple and Qualcomm’s scorching battle and a dispute between Huawei and Samsung. In a dispute, Huawei also stopped paying Qualcomm billions of dollars in royalties.

The greyB Services Pte and Amplified AI study looked at 6,400 inventions declared “essential” to 5G by patent holders with valid patents around the world as of December 31, 2019. By comparing the wording of the patent with the standard, the team of 25 researchers concluded that 1,658 of the patents were “core” 5G patents.

However, courts and negotiators will ultimately decide whether the patents are really essential to the standard and whether they are valid and valuable.

The study found that all companies are actively filing patents to ensure that they can exercise their rights in the future and to work to increase the royalties they can collect.

In a court filing in a patent dispute with Verizon, Huawei said it had collected more than $1.4 billion in patent licensing fees and paid about $6 million to other companies.

“Huawei has created a lot of its own intellectual property, and we don’t need to steal other people’s things. Ben Howes, a Spokesman for Huawei, said in a comment video that the company said the video was made “in response to the U.S. government’s attempts to prevent Huawei from working with academic institutions and from using our own research and development and patents to innovate.”

Phase 1 study

Deepak Syal says that as more patents are being analyzed and standards are evolving, the greyB Services Pte and Amplified AI research is considered the first phase, demonstrating the interconnectedness of companies around the world. The purpose of the study, he says, is to “make it clearer how discussions or decisions are made.”

“Instead of talking about who contributes less, or who has fewer patents, try to increase the intellectual contribution of our country or our national companies, and then build 5G infrastructure.” He said. “Otherwise, even if a blockade is taken, it will ultimately be useless because they are paying royalties.” “

As part of the Trump administration’s campaign against Huawei, U.S. Secretary of State Michael Pompeo said last week that European countries “need to get Huawei out of their system.” They need to use Western technology.”

Despite the U.S. government’s continued global attacks on Huawei, Huawei remains a player in the market because of the Chinese company’s global business footprint and advanced technology.

“From a purely technical point of view, nationalism is no longer working,” said Jorge Contreras, a law professor at the University of Utah. “

Bloomberg: U.S. companies still have to pay Huawei 5G even if Trump administration enforces ban